ESR closes $1b development JV with APG and CPP Investments

ESR Cayman, a Warburg Pincus–backed global logistics real estate firm, has closed its $1 billion joint venture in South Korea with Dutch pension administrator APG and the Canada Pension Plan Investment Board.

ESR-KS II will develop a portfolio of institutional-grade warehouse assets in Seoul and Busan, tapping into the consumer spending power of South Korea’s two largest population centers.

With a total equity allocation of $1 billion, ESR-KS II will invest in and develop a best-in-class industrial and logistics portfolio in South Korea. APG, CPP Investments and ESR have agreed to initial investments in the joint venture in the amounts of $350 million, $450 million and $200 million, respectively. The partners have allocation expansion options that could bring the total equity investment capacity to as much as $2 billion over time. APG, CPP Investments and ESR will hold 35 percent, 45 percent and 20 percent, respectively, of the joint venture.

ESR-KS II will